NEW YORK: Call it a drug trade for investors. Todd Harrison, CEO and founder of Internet-based financial media company MInyanville, thinks cannabis “will be the single best investment idea for the next ten years.”
But while the public has watched recreational marijuana take off in Colorado this year, how can they profit from it as an investment theme?
Harrison believes it will be driven by the broader legalization of marijuana, inspired by states’ need for tax revenue. He points to expectations that legal marijuana use is expected to generate $134 million in tax revenue for the upcoming fiscal year in Colorado, the first state to allow recreational marijuana. That’s nothing to sneeze at, and Harrison calls the state the “litmus test” for broader legalization. Harrison also cites the expected decline in crime rates and prison populations as powerful incentives to decriminalize marijuana.